EMP Kangean to cut off gas supply to Gresik power plant

Friday, October 28 2005 - 02:49 AM WIB

EMP Kangean Ltd, an operator of an oil filed in Kangean , East Java, will totally cut off its gas supply of about eight million metric standard feet per day (MMSCFD) to PT Pembangkit Jawa Bali's large power plant in Gresik, beginning November 1, due to the depletion of the company's gas reserves, Bisnis Indonesia reported on Friday.

Amien Rizard, PJB's manager for fuel supply, said in Surabaya on Thursday EMP Kangean actually had a contract to provide gas supply to the Gresik power plant until 2007.

"But the company could not fulfill its commitment due to continued decline in the company's gas reserves," he said, adding that the existing reserves would be only enough to meet its gas supply commitment to PT Petro Kimia Gresik and gas distribution company PGN.

He said that the Gresik power plant had not choices but turn to diesel oil to support its operation because the 100 MMSCFD of gas supply currently provided by Kodeco would no longer be enough to meet its total gas needs which reached about 242 MMCFD. (*)

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